THE WOMEN S CENTER OF TARRANT COUNTY, INC.

Transcription

1 THE WOMEN S CENTER OF TARRANT COUNTY, INC. AUDITED FINANCIAL STATEMENTS Year Ended December 31, 2013

2 CONTENTS INDEPENDENT AUDITOR S REPORT 1 Page AUDITED FINANCIAL STATEMENTS Statements of Financial Position 3 Statements of Activities 4 Statements of Cash Flows 5 Statements of Functional Expenses 6 Notes to Financial Statements 7

3 Board of Directors The Women's Center of Tarrant County, Inc. Fort Worth, Texas Report on the Financial Statements INDEPENDENT AUDITOR S REPORT We have audited the accompanying financial statements of The Women's Center of Tarrant County, Inc. (the Center ) which comprise the statement of financial position as of December 31, 2013, and the related statements of activities, cash flows, and functional expenses for the year then ended and the related notes to the financial statements. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Center s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Center s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Center as of December 31, 2013, and the change in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. 1

4 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 28, 2014 on our consideration of the Center s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Center s internal control over financial reporting and compliance. Report on Summarized Comparative Information We have previously audited the Center s 2012 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated June 3, In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2012, is consistent, in all material respects, with the audited financial statements from which it has been derived. May 28,

5 STATEMENTS OF FINANCIAL POSITION December 31, 2013 and ASSETS Cash and cash equivalents $ 1,523,519 $ 483,705 Accounts receivable 171, ,413 Contributions receivable, net 52,570 50,786 Inventory 12,293 - Prepaid expenses and deposits 58,374 48,353 Other assets 538, ,340 Investments 4,571,124 4,202,366 Beneficial interest in trust 863,246 1,189,898 Property and equipment, net 5,940,861 6,242,460 Total assets $ 13,732,467 $ 12,738,321 LIABILITIES AND NET ASSETS Liabilities Accounts payable $ 98,063 $ 86,953 Accrued liabilities 159, ,623 Due to related party 5,103 - Deferred revenue 249,599 93,442 Total liabilities 512, ,018 Commitments and Contingencies - Notes 12 and 13 Net Assets Unrestricted Undesignated 8,704,904 7,821,574 Designated Operating 1,800,000 1,300,000 Building maintenance 1,500,000 1,500,000 Equipment purchases - 100,000 New program development - 100,000 3,300,000 3,000,000 Total unrestricted net assets 12,004,904 10,821,574 Temporarily restricted Program or other specified purpose 299, ,045 Time 915,816 1,240,684 1,215,432 1,603,729 Total net assets 13,220,336 12,425,303 Total liabilities and net assets $ 13,732,467 $ 12,738,321 See notes to financial statements. 3

6 STATEMENTS OF ACTIVITIES Year Ended December 31, 2013 with Comparative Total for 2012 Temporarily Total Unrestricted Restricted Revenue and other support: Contributions $ 752,699 $ 683,296 $ 1,435,995 $ 1,150,056 United Way 922, ,738 1,270,456 Government grants and contracts 1,003,828-1,003, ,426 Program service fees 20,920-20,920 25,460 Special events income, net of expenses of $115,429 in 2013 and $44,100 in , , ,602 Investment income 82,345-82,345 89,635 Net realized and unrealized gain on investments 395, , , ,695 Miscellaneous income 5,046-5,046 55,769 Net assets released from restriction: Satisfaction of time restrictions 759,512 (759,512) - - Satisfaction of program/purpose restrictions 468,429 (468,429) - - Total revenue and other support 4,755,926 (388,297) 4,367,629 4,076,099 Expenses: Program services: Rape Crisis and Victim Services 1,528,644-1,528,644 1,404,225 Employment Solutions 1,224,085-1,224,085 1,574,149 Counseling and Case Management 453, , ,245 Total program services 3,206,451-3,206,451 3,405,619 Supporting services: Management and general 170, , ,364 Fundraising 195, , ,943 Total supporting services 366, , ,307 Total expenses 3,572,596-3,572,596 3,739,926 Change in net assets 1,183,330 (388,297) 795, ,173 Net assets at beginning of year 10,821,574 1,603,729 12,425,303 12,089,130 Net assets at end of year $ 12,004,904 $ 1,215,432 $ 13,220,336 $ 12,425,303 See notes to financial statements. 4

7 STATEMENTS OF CASH FLOWS Years Ended December 31, 2013 and Cash Flows from Operating Activities Change in net assets $ 795,033 $ 336,173 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation 307, ,262 Net realized and unrealized gain on investments (551,480) (170,695) (Increase) decrease in operating assets Accounts receivable 16,873 (29,176) Contributions receivable (1,784) 27,852 Inventory (12,293) - Prepaid expenses and other assets (10,021) 4,628 Increase (decrease) in operating liabilities Accounts payable and accrued liabilities 37,853 (21,030) Due to related party 5,103 - Deferred revenue 156,157 35,201 Net cash provided by operating activities 742, ,215 Cash Flows from Investing Activities Purchase of investments (500,447) (928,384) Proceeds from sale of investments 1,009, ,146 Purchase of other assets (206,600) (212,340) Purchase of property and equipment (5,580) (14,882) Net cash provided (used) by investing activities 297,194 (518,460) Net increase (decrease) in cash and cash equivalents 1,039,814 (26,245) Cash and cash equivalents at beginning of year 483, ,950 Cash and cash equivalents at end of yea $ 1,523,519 $ 483,705 See notes to financial statements. 5

8 STATEMENTS OF FUNCTIONAL EXPENSES Year Ended December 31, 2013 with Comparative Total for 2012 Program Services Supporting Services Counseling Total Management Total Rape and Case Program and Fund- Supporting Total Crisis Employment Management Services General Raising Services Salaries and related costs $ 1,194,343 $ 678,839 $ 353,995 $ 2,227,177 $ 112,222 $ 134,199 $ 246,421 $ 2,473,598 $ 2,319,661 Professional fees 65,176 17,103 8,193 90,472 5,620 14,378 19, , ,449 Assistance to individuals ,894 2, , , ,565 Utilities 19,480 21,826 6,233 47,539 1,640 1,640 3,280 50,819 50,613 Supplies 16,395 14,214 4,644 35,253 2,923 3,281 6,204 41,457 54,960 Telephone and answering service 20,100 13,430 6,151 39,681 1,525 1,837 3,362 43,043 43,630 Occupancy 12,621 4,224 10,680 27, ,725 29,646 Equipment maintenance and rentals 13,742 16,739 3,356 33,837 8,142 3,255 11,397 45,234 38,028 Printing/advertising and promotions 11,420 7,557 1,620 20, ,440 9,257 29,854 34,635 Insurance 10,561 11,881 3,387 25, ,830 27,659 28,448 Travel 9,853 4,880 2,228 16, ,246 18,207 15,408 Maintenance 18,825 21,117 6,028 45,970 1,603 1,603 3,206 49,176 56,220 Conferences 15, , ,261 18,273 12,776 Postage 3, ,548 1,062 1,370 2,432 6,980 6,774 Other 12,533 9,067 3,115 24,715 18,016 7,778 25,794 50,509 54,851 Total expenses before depreciation 1,424,757 1,091, ,421 2,929, , , ,888 3,265,417 3,430,664 Depreciation 103, ,734 40, ,922 15,110 15,147 30, , ,262 Total expenses $ 1,528,644 $ 1,224,085 $ 453,722 $ 3,206,451 $ 170,627 $ 195,518 $ 366,145 $ 3,572,596 $ 3,739,926 See notes to financial statements. 6

9 NOTES TO FINANCIAL STATEMENTS NOTE 1. SUMMARY OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES Nature of Activities and Governance The Women's Center of Tarrant County, Inc. (the Center ) opened in Fort Worth, Texas in January The Center provides comprehensive crisis intervention, counseling, and crime prevention services in the areas of sexual assault and other violent crime; information, referral, and counseling for women in crisis and transition; comprehensive employment services for women and men; and public advocacy and community education in all the areas in which the Center works. The Center s mission is Inspiring, teaching and empowering women and families to overcome violence, crisis and poverty. The Center is governed by a Board of Directors (the Board ), which is composed of up to forty unpaid community members. The Board s key roles and responsibilities are strategic planning, policy development, and general organization oversight and accountability. The Board employs the President and Chief Executive Officer, who is the general manager and chief administrative officer of the Center. Management Estimates and Assumptions Management uses estimates and assumptions in preparing financial statements in accordance with accounting principles generally accepted in the United States of America. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could vary from the estimates that are used. Cash Equivalents The Center considers all highly liquid investments with an initial maturity of three months or less to be cash equivalents. Accounts Receivable Accounts receivable represent government grant receivables and other receivables at December 31, 2013 and Based on past experience and analysis of current receivable collectability, no allowance for doubtful accounts is considered necessary. Other Assets Other assets are comprised of the Rape Crisis & Victim Services, Play it Safe! TM video project. Once placed in service the project will be amortized over its estimated useful life using the straight-line method. Inventory Inventory, consisting primarily of materials for the Play it Safe! TM videos, are valued using lower of cost or market on the first-in, first-out basis. Investments Investments are carried at fair value based on quoted market prices. Realized and unrealized gains and losses are included in the statement of activities. Property and Equipment Property and equipment that are purchased are recorded at cost and depreciated over their estimated useful lives using the straight-line method. Donations of property and equipment are recorded as support at their estimated fair value. Such donations are reported as unrestricted support unless the donor has 7

10 NOTES TO FINANCIAL STATEMENTS NOTE 1. SUMMARY OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Continued) Property and Equipment (Continued) restricted the donated asset to a specific purpose. Assets donated with explicit restrictions regarding their use and contributions of cash that must be used to acquire property and equipment are reported as restricted support. Absent donor stipulations regarding how long those donated assets must be maintained, the Center reports expirations of donor restrictions when the donated assets are placed in service or when the acquired assets have been purchased as instructed by the donor. The Center reclassifies temporarily restricted net assets to unrestricted net assets at that time. Impairment of Long-Lived Assets Management evaluates its long-lived assets for financial impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. An impairment loss is recognized when the estimated undiscounted future cash flows from the assets are less than the carrying value of the assets. Assets to be disposed of are reported at the lower of their carrying amount or fair value, less cost to sell. Management is of the opinion that the carrying amount of its long-lived assets does not exceed their estimated recoverable amount. Revenue Recognition The Center recognizes program fees, contributions, and unconditional pledges when received, and grant revenue when the related expenses are incurred. Recognition of Donor Restrictions Donor-restricted support is reported as an increase in temporarily or permanently restricted net assets depending on the nature of the restriction. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets. Donated Equipment and Services Donated materials are reflected as contributions at their estimated value at the date of receipt. The Center had $28,193 in 2013 and $39,131 in 2012 of donation of services that require specialized skills which would require purchase if not donated. All such amounts are treated as a contribution with an offset to program or supporting service expense in 2013 and Deferred Revenue Deferred revenue represents special event revenue received and expenses incurred prior to actual event date; and grants received during the year that have grant periods extending beyond the fiscal year end and are therefore deferred until the services are performed or the grant period is complete. Allocation of Functional Expenses Functional expenses, which are not solely and specifically related to a functional program, are allocated based principally on estimates made by management. 8

11 NOTES TO FINANCIAL STATEMENTS NOTE 1. SUMMARY OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Continued) Reclassifications Certain amounts in 2012 have been reclassified to conform with 2013 presentation. Income Taxes The Center is a not-for-profit organization that is exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code and classified by the Internal Revenue Services as other than a private foundation. At December 31, 2013, management determined that there are no uncertain tax positions that require disclosure in the financial statements. The Center s Form 990, Return of Organization Exempt from Income Tax, for the years ended 2010, 2011, and 2012 are subject to examination by the IRS, generally for three years after they were filed. Subsequent Events Management evaluated subsequent events through May 28, 2014, which is the date the financial statements were available to be issued. NOTE 2. CONTRIBUTIONS RECEIVABLE At December 31, 2013 and 2012, contributors have made unconditional promises to give operating funds of $52,570 and $50,786, respectively, to the Center. Receipts of the promised contributions at December 31, 2013 are expected in No allowance for uncollectible accounts is considered necessary at December 31, NOTE 3. CONDITIONAL PROMISES TO GIVE At December 31, 2012, the Center had conditional promises to give in the amount of $250,000 related to the Rape Crisis & Victim Services, Play it Safe! TM video project. The donor stipulated that the amount would be available at specified intervals including completion and approval of first video in Phase 1, the beginning of Phase 2, and completion and approval of first video in Phase 2. The original pledged contribution from the donor was $500,000, of which $250,000 was received and recognized as a contribution in the statement of activities during 2011 and 2012 as the conditions were met. The remaining $250,000 was received and recognized during 2013 as conditions were met. NOTE 4. BENEFICIAL INTEREST IN TRUST The beneficial interest in trust represents the fair value of a 50% split-interest in a trust established from the bequest of Virginia Robinson. The assets are held in trust by banks as permanent trustees of the trust. The assets are recorded in the financial statements as temporarily restricted net assets. The unrealized gains and losses are reported as temporarily restricted in the Center s statement of activities. 9

12 NOTES TO FINANCIAL STATEMENTS NOTE 5. INVESTMENTS Investments consist of the following: NOTE Fair Fair Value Cost Value Cost Cash equivalents $ 145,031 $ 145,031 $ 130,657 $ 130,657 Fixed income securities 2,260,126 2,250,769 34,053 34,000 Certificates of deposit , ,000 Partnerships 357, , , ,000 Equities 1,808,616 1,346,865 3,666,368 3,429,384 $ 4,571,124 $ 3,967,665 $ 4,202,366 $ 3,919,041 PROPERTY AND EQUIPMENT Property and equipment are comprised of the following: NOTE Land and buildings $ 6,872,432 $ 6,872,432 Furniture and equipment 578, ,992 Leasehold improvements 9,545 9,545 7,460,095 7,463,969 Less accumulated depreciation (1,519,234) (1,221,509) $ 5,940,861 $ 6,242,460 LINE OF CREDIT The Center has a $250,000 unsecured line of credit with a bank to provide for short-term cash flow requirements. This unsecured line of credit was initiated in March 2010 is renewed annually and bears interest at 4.75% at December 31, The line of credit is unused at December 31, 2013 and will expire on June 28, NOTE 8. UNRESTRICTED DESIGNATED NET ASSETS The unrestricted designated net assets of the Center represent amounts designated by the Center s Board to be used for operating, building maintenance, equipment purchases, and new program development. Designated operating net assets are comprised of no less than six months average operating expenses based on the current year operating budget. Designated building maintenance net assets are comprised of $1,500,000 designated following the Capital Campaign. Earnings from these funds will be used as needed in the annual operating budget to fund increased operating costs and to fund repairs and maintenance in the new facility. Designated equipment net assets are comprised of funds to be used if new equipment is needed. Designated new program net assets are comprised of funds set aside to take advantage of new program or partnership opportunities which generally require matching or seed funds. 10

13 NOTES TO FINANCIAL STATEMENTS NOTE 9. RESTRICTIONS ON NET ASSETS Temporarily restricted net assets at December 31, 2013 and 2012, consist of the following: NOTE Program/purpose restrictions Building maintenance $ 180,194 $ 307,913 Video marketing 47,349 21,673 Video production 72,073 33,459 Total program/purpose restrictions 299, ,045 Time restrictions Contributions receivable 52,570 50,786 Balance in trust 863,246 1,189,898 Total time restrictions 915,816 1,240,684 Total restricted net assets $ 1,215,432 $ 1,603,729 FAIR VALUE OF ASSETS AND LIABILITIES The accounting standards issued by the Financial Accounting Standards Board establish a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standards describe three levels of inputs that may be used to measure fair value: Level 1 Level 2 Level 3 Quoted prices in active markets for identical assets or liabilities. Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Following is a description of the valuation methodologies used for assets and liabilities measured at fair value on a recurring basis and recognized in the accompanying statement of financial position, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy. Investments Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include publicly traded stocks, mutual funds, certificates of deposit, and money market funds. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Level 2 investments are valued based on the fair value of underlying assets. 11

14 NOTES TO FINANCIAL STATEMENTS NOTE 10. FAIR VALUE OF ASSETS AND LIABILITIES (Continued) The following table presents the fair value measurements of assets and liabilities recognized in the statement of financial position measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, Fair Value Measurements Using Fair Value Level 1 Level 2 Level 3 Cash equivalents $ 145,031 $ 145,031 $ - $ - Municipal bonds 33,118 33, Partnership 357, ,351 - Common stock Real estate 172, , Energy 123, , Materials and other 57,273 57, Mutual funds Intermediate-term bond 1,007,960 1,007, Short-term bond 1,217,500 1,217, Large value 938, , Mid-cap blend 79,365 79, Emerging markets 24,684 24, Large growth 108, , Large blend 165, , Large core 140, , Beneficial interest in trust 863, ,246 - Total $ 5,434,370 $ 4,213,773 $ 1,220,597 $ - 12

15 NOTES TO FINANCIAL STATEMENTS NOTE 10. FAIR VALUE OF ASSETS AND LIABILITIES (Continued) The following table presents the fair value measurements of assets and liabilities recognized in the statement of financial position measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, Fair Value Measurements Using Fair Value Level 1 Level 2 Level 3 Cash equivalents $ 130,657 $ 130,657 $ - $ - Municipal bonds 34,053 34, Certificates of deposit 100, , Partnership 271, ,288 - Common stock Real estate 147, , Energy 91,144 91, Materials and other 57,119 57, Mutual funds Intermediate-term bond 1,053,155 1,053, Short-term bond 1,224,230 1,224, Large value 714, , Mid-cap blend 60,621 60, Emerging markets 15,586 15, Large growth 79,012 79, Large blend 109, , Large core 113, , Beneficial interest in trust 1,189,898-1,189,898 - Total $ 5,392,264 $ 3,931,078 $ 1,461,186 $ - Other Financial Instruments The recorded amounts of cash and cash equivalents, accounts and contributions receivable, and accounts payable approximate fair value based on their short-term nature. NOTE 11. EMPLOYEE PENSION PLAN The Center has a defined contribution employee pension plan to which it contributes an amount equal to 3% of eligible employees salary. Employees are eligible to participate in the plan after they have completed one year of service or immediately after hire date if they have worked for another social service organization within the last three years for a comparable period. Participating employees vest 100% after six years of service or upon attainment of their early retirement age. Forfeitures due to employee separation from service before vesting are used to reduce Center contributions. Contributions are approximately $49,000 in 2013 and $45,000 in

16 NOTES TO FINANCIAL STATEMENTS NOTE 12. COMMITMENTS The Center leases certain office space and equipment under non-cancelable operating leases having remaining terms in excess of one year. The minimum lease commitment at December 31, 2013, follows: 2014 $ 27, , , , , ,000 $ 162,000 Rental expense approximated $29,000 in 2013 and $30,000 in During 2011, the Center entered into a contract for the conceptualization, development, and production of the Play it Safe! TM video project. At December 31, 2013 $61,060 remains outstanding on this contract and will be paid during 2014 as the videos are completed. NOTE 13. CONTINGENCIES The Center receives several federal and state awards for specific purposes that are subject to review and audit by the grantor agencies. Such audits could lead to requests for reimbursements to grantor agencies for expenditures disallowed under the terms of the awards. In the opinion of management, disallowed costs, if any, will not materially affect the financial position or the change in net assets of the Center. NOTE 14. RELATED PARTY TRANSACTIONS The Women s Center of Tarrant County Foundation (the Foundation ) was formed on October 11, 2013 to perform charitable activities including holding, managing, receiving, administering, and investing property for the exclusive use, benefit, and support of the Center and to be responsive to the needs and demands of the Center. The Center and the Foundation share common facilities and employees. At December 31, 2013, the Center has payables to the Foundation in the amount of $5,